Plan for Annual Meeting

(Some Good Questions to Ask the Board of Directors)


Preface

The Campbell Resources Annual General Meeting is planned for May 23rd, 2007. It will be held in Chibougamau, Quebec, which is a few hundred miles north of Montreal.

There are many questions raised on this website.  The big picture here is that many shareholders do not believe these things are happening by accident.  At the same time these events are occurring, some prominent Institutions are buying CCH shares (and even trying to hide their purchases – why would Sprott Asset Management buy the U.S. symbol?).  We also have new reports of fresh Insider buying.   Shareholders are asking if there is a connection here.

Questions:

Why has Campbell failed to adopt a Shareholder Rights Plan, similar to the one that their partner Nuinsco recently adopted?

Why was this meeting held in Chibougamau, instead of Montreal? Recent meetings have been held in Montreal. Montreal is much more accessible for shareholders, especially shareholders that fly in from other places.  Why the change of meeting location?

Shareholders have seen no signs that Campbell is taking the promotion of their own product seriously.  In the last 6 months the only promotion effort that we can see has been to send Alan Blais to the NY Gold Show.  And Campbell didn’t even make sure they were listed on the Official Directory for the show.

This apparent failure to promote has come after absolute verbal commitments for Mr. Fortier (in 2006) that Campbell would start promoting after they emerge from CCAA.  Shareholders are frustrated with this situation.  In another example, Campbell has apparently ended their business relationship with Remark, their Investor Relations Firm.  Renmark is no longer listed on the new Campbell website.

Can the Board please comment on their future plans for company promotion, and commit to an immediate improvement in this area? 

In the Management Discussion and Analysis (recently released) you revealed that your crews "unexpectedly" discovered high grade gold in the Joe Mann mine, and had already started extracting this old.

Shareholders believe this to be excellent good news for the company.  We have been told for over year how the outlook for Joe Mann was very questionable.   And Campbell recently reported their plans to close the Joe Mann mine later this year.  Workers would obviously be affected.  Now we see this good news on these high grade results. 

We have some questions: 

How recently was this high grade gold discovery made?  

How did the Joe Mann exploration drilling miss these high grade veins? 

Since Campbell has already started work on extracting gold form these veins, the company obviously knew about this gold before the NY Gold Show.  How come there was no press release and no mention of this discovery at the Gold Show? 

Most mining companies would put out a press release to announce a gold discovery like this.  Why has the company failed to do this?  (One emailed answer from Mr. Fortier said that the reason was because it was just a sample.  But the norm in this industry is to actually announce the results from sampling, with disclosure that they are sample results.) 

In February, Campbell reported a rock fall in the Cooper Rand mine.  A day or two later, Mr. Fortier made some comments top the press (as documented in the “Chronicles on the Down Play" page).  Shareholders believe it was wildly inappropriate for the CEO to be making these comments.

Does the Board believe that the press comments made by Mr. Fortier were appropriate and beneficial to shareholder value?

The process of emerging form CCAA protection has been a long process.  As of Feb 28th, the parent company (Campbell) has satisfied all CCAA obligations and has formally announced that they are “out of CCAA”.  But two subsidiary companies remain under protection.

Shareholders have been told that the reason was because Campbell Management is trying to complete bone or two tax deals, as covered in the Plans of Arrangement.  But the process is dragging out well beyond the estimates given in late 2006 (the estimate, in company press releases, was that everything would be wrapped up by the end of 2006).

Does the Board appreciate that having some subsidiaries still under CCAA might be a slightly dark cloud hanging over the company?   Seeing a positive press release in this area would be a very positive development, but we see any rush by Management to get to that point.

With all of these issues wrapped up, Campbell would most certainly have been able to demand as higher price for those shares in the private placement that recently closed.

Was getting the best price highest possible price for those shares important for the company?  Was having more funds in the Campbell Treasury important for the company?

Could the Board tell shareholders anything about who the buyers of the April private placement were?  Could you answer whether the buyers were good cross section of Investors from different firms?  Did Insiders participate in the private placement?

Does the Board believe that the share price of the April Private Placement was reasonable and appropriate?  The “word on the street” is that the placement sold out in 2 hours.  Mr. Fortier’s own emails (as reported on the message boards) suggested that the placement sold in a few days.  Does the Board have any feeling that they could have gotten a high price for those shares?  

Considering the tax advantage, the effective price of those shares was down around 10 cents a share, well below the recent moving average and price with volume indicators.  No small shareholder reported any success at being allowed to buy those shares.

Can the Board honestly say to shareholders that a "Best Effort" was made to get best price?   These are funds that go directly into the Campbell Treasury.  The company is now reported a small debenture financing, presumably because Campbell needs a little more money (or does someone need a few more shares?).

We understand that Management may want to handle the CCAA Tax Transactions a certain way.  But does the Board of Directors care that these the "long time it is taking"  issues may possibly be a drag on the CCH stock price?

Initial news suggests that Nuinsco Resource will be a beneficiary of the upcoming Debenture Financing.   The deal would probably be more favorable for Nuinsco if the share price is lower.  At the same time, we do not see clear signs that the company wants a higher CCH stock price.

Shareholders are concerned that there may be a Conflict of Interest here.  What does the Board say about this?

Can the Board please comment on what kind of copper production costs are expected at the Corner Bay project?  Mr. Fortier has made verbal comments a, and answered emails, where he has said that costs will be $1.50 - $1.80 per pound.  This is a very high number given the high grades and shallow depth at Corner Bay.  Shareholders are suspicious that this Cost number may be deliberately inflated.  Can the Board comment, please?

Campbell is right now working on a new ramp at the Copper Rand project.   In a recent report from the company, Management explained that the new ramp was necessary because of damage sustained in the rock fall.  But in the weeks following the rock fall, there was never any discussion that the ramp was damaged.  Press releases after the rock fall stated that “no equipment was damaged”. 

So in building the ramp, Campbell has lost another 1+ quarters of production from Copper Rand.  That’s production is worth millions of dollars in cash flow, and has resulted in lowered earnings for the 1st and 2nd quarters. 

Can the Board of Directors say to shareholders that it was absolutely necessary to build that ramp at this specific time?   Can the Board tell us that it was more important to do this work, than it was to receive the operating income from Copper Rand in this current quarter?

(Possibly unnecessary work = depressed earnings = lower share price = low priced private placement shares = low price for insider buying)

This situation has the appearance that maybe Campbell didn’t want the earnings coming in, not quite yet.  Could the Board confirm or deny this, please?